Are They on the Right Business Model for Success?

• 발행기관: 피터드러커 소사이어티
• 저자명: Ki-Chan Park Yong-Hwa Park Tae-Seung Kim Lee Jeong-Tae
• 간행물 정보: 『창조와 혁신』제4권 제1호, 25~57쪽, 전체 33쪽
• 주제분류: 경제경영 > 경영학
• 파일형태: PDF
• 발행일자: 2011.02.28

영문 초록

Since 2005, four Korean LCCs are operating showing noticeable growth rate. The Korean LCC (low cost carrier) industry is expected to grow continuously through the competition between legacy and foreign LCCs. This research aimed to suggest more effective micro strategies for Korean LCCs based on the Ser-M and SWOT analysis. Hence the Korean LCC players have similar characteristic as less expensive carriers, we recommended macro strategies by gap analysis and ERRC model implying that they should adopt stricter LCC business model for the development and for the competitiveness. From the analysis we could induce suggestions; It is required to decrease their fare at least in the range of 70s % of legacy carrier’s one by eliminating free in-flight services as is the case of Southwest which has been an authentic business model for LCC; Direct sales by internet and smart-phone would help them to save cost like commission and labor cost; Various point-to-point route expansion strategy is quite relevant for LCC, and FFP (frequent flyer program) will be a mean for LCC to show more effective revenue management. Meanwhile, government policies are critical for the development of Korean LCCs; Regional liberalization in air transport, infrastructure and airport for LCC, convenient surface connection from airport, regional tourism development combining with airport, cultivating and supplying the human resource for aviation industry etc.

목차

Introduction

Theoretical Background

The Overview of Korean Airline Industry

Ser-M Analysis on Korean LCCs

The Development Strategies for the Korean LCCs

Conclusion

Reference

키워드

LCC business model Ser-M analysis ERRC model Air transport policy